Cottonwood Closes $1 Billion Special Situations Fund

Private real estate investment firm Cottonwood Group closed a $1 billion fund for special situations, including properties needing financial restructuring, new development or other potentially high-yielding opportunities.

The fund has already invested about $300 million, mostly through loans that have options to acquire title to properties in the event of a default, according to Cottonwood. The vehicle, which targeted $500 million, had an initial close in 2023 and has generated an internal rate of return of 20% so far.